Routt commissioners table energy exploration request again

Quicksilver Resources’ patience runs out after 2nd time

Steamboat Springs  The year-long relationship between Quicksilver Resources and Routt County government reached new levels of frustration Tuesday night as the Routt County Board of Commissioners tabled for the second time in two months the energy exploration company’s request for a permit to drill an oil well on the Camilletti Ranch north of Milner.

The crux of the night’s discussion was the commissioners’ struggle to draft the language for conditions of approval dealing with water- and air-quality monitoring despite the fact that two out-of-town consultants hired for that purpose by the county were sitting at the table.

Sensing that the commissioners were not prepared to move the permit forward after hearing more than three hours of expert testimony and public comments, Quicksilver Senior Director of Government and Community Affairs Stephen Lindsey effectively backed out of the county process.

“Essentially, we’ve reached a point where we can’t continue in this fashion any more,” Lindsey told the commissioners. “We’ve made repeated attempts and statements that we’ll work with the county. But from this point forward, we request that all conditions of approval for each individual well be submitted (on the appropriate forms) to the Colorado Oil and Gas Conservation Commission through the (local government designee) process.”

Board Chairman Doug Monger plainly was upset by Lindsey’s statement.

“What does that mean?” he asked Lindsey. “Does that mean you’re going to pull your permit? I think that’s hogwash, Mr. Lindsey. What you, in essence, have told us here is you’ve pulled the plug and ‘We’ll see you in court.’ We’ve been working very hard toward a standard set of conditions, and I think we’re this close. I hope you don’t think you’re pulling the plug on this.”

Lindsey told the commissioners his remarks should not be construed as a threat to file a lawsuit nor did he mean to say his company isn’t open to working with Routt County in the future. However, he said the delays in the county process had continued to the point that leaseholder agreements and contracts with mineral-rights owners were being jeopardized.

“Unfortunately, what we’ve seen so far is additional (conditions of approval) being added in and added in and, again like tonight, a delay,” Lindsey said. “We can’t conduct business operations like that based on the regulatory rule set (at the state level). I’m sad, as well. Unfortunately, we’ve come to a point we’ve made a decision that we have to get clarity on the process.”

The commissioners and Lindsey already had found middle ground April 24 on the language of more than 60 conditions of approval when they mutually agreed to table the permit application. The intent was to allow for two task forces involving outside experts to be assembled to hammer out the language of the water- and air-quality protections the commissioners want energy companies to undertake.

The commissioners and planning staff identified consulting hydrologist Tom Myers, of Reno, Nev., to research the water-quality issues and Lincoln Sherman, of Air Resource Specialists, to advise on air quality.

Myers told the commissioners that ideally they already would have been taking water-quality samples from test wells at the Camilletti site during the preceding year to create a timeline to measure any baseline impurities throughout the seasons.

Given time constraints, Myers suggested they require Quicksilver to install one well between the well pad and Milner with technology to sample water from several layers of rock strata.

However, Quicksilver brought to the public hearing its own hydrogeology expert who sought to debunk Myers’ approach.

“As a canary in the coal mine, forget about it,” Universal Geoscience Consulting President Tony Gorody said. “Your chance of drilling one well and of seeing (any contaminants) is slim to none.”

Commissioner Diane Mitsch Bush said her primary motivation for water-quality testing was to detect problems before they reached domestic wells, and Commissioner Nancy Stahoviak backed her up.

“Darn it, if we’ve got a problem and there’s a complaint, we’re too late,” Stahoviak said. “We’ve got to figure this out. I’m sorry we’re a county that listens to our constituents. We have to do what’s right for our citizens.”

The commissioners voted unanimously to table the matter until July 10, saying they intend to deliver a completed water-quality monitoring condition and adding that they may defer an air-quality condition to the next oil well application in line.

Comments

This proposed Camelletti oil well, more than any other to my knowledge, bears directly on the domestic water wells of a Routt community. It is less than a mile from and uphill of Milner. The BOCC is right to take every possible step to insure those residents' heath, safety and welfare are not compromised. Doug Monger expressed that the county has worked very hard to get this right, and is close to setting those conditions. Accepting the complaints of Quicksilver, they opted to leave the air quality for another day. But water is too important on this one.

On more than one occasion at previous hearings, Quicksilver stated it was willing to install a monitoring well. At the last hearing it was Quicksilver suggesting the extra time taken so the well location could be based on expert input. The resulting consultant report on water quality monitoring was instructive and useful; it just didn't produce the required permit language.

Quicksilver's consultant offered no prior detection system for Milner. If he is correct that early detection is impossible, then this well permit is an unacceptable risk for Milner's domestic water wells. The same consultant, questioned by the county attorney, made inconsistent remarks: supporting the COGA voluntary program (he helped write it) with one test a year or more after fracking, but earlier saying any issues would be found in the early months around fracking.

Quicksilver complained about the additive nature of Routt regulations. I understand their frustration, but Routt had a lot to learn over the past year and will learn more in coming permits.

The Quicksilver consultant said well bore integrity was the real risk, and would be found by Bradenhead testing (a test of pressures in the outer casing volumes). But these well bore failure risks extend beyond the production cycle and after well abandonment. Who will be confirming well bore integrity after well abandonment?

This one on well bore integrity has concerned me. I've heard and read the same acknowledgement from other experts - well bore integrity is the key, its the biggest issue. But I asked a local industry environmental consultant, I've asked the COGCC's lead inspector, I've even asked the COGCC director himself : "Where is the data on well bore integrity issues?" None of those 3 experts had an answer. Sometimes this industry makes no sense.

I appreciate the county commissioners and the county staff effort at diligence. This is not easy to get right.

I'm so proud of the commissioners,you have helped to establish a trust in our county leaders ,you represent the people who live in our beautiful Routt County .To be listened to by a commissioner is so vital.Thanks to the many citizens , tourist's,and people in the whole country who signed the petition and spoke up for a clean planet.Thanks to you the water will be clean in Routt County,that is a huge thing to remember you by.I can't thank you enough.

I agree w/John W.
there is a lot to say but for now I will just say this
Thank you Routt county for looking at this from the point of homeowners in Milner.
we too live here and Quicksilver should seek wells elsewhere.Drilling that close to homes is just asking for trouble ..and thx to our local Govt.we might just have seen the last of Qsilver......